Effects of International Trade on Poverty in India Research Paper

Effects of International Trade on Poverty in India - Research Paper Example India has a population of more than 40% who spend less than this amount a day and have one of the lowest per capita incomes when compared to other countries in the region (Almas, Kjelsrud & Somanathan, 2013). Statistics from the national sample survey from 1973-2002 indicate the changing trends of poverty in the country and the population section that have been most affected by poverty in the country. The 1973 census indicated that out of the total population, 54.9% was leaving way below the poverty line. The poverty index increased from this year to 1990s as a resulting of the surging population growth which was not supported by a concurrent economic growth in the country. In the 1990s, the poverty trend worsened with a high percentage of up to 320 million Indians classified as being poor and requiring support from the government. During this era, the significant pace of decline in poverty decreased from an impressive 6% to 2.9%, attributed to the significant increase in population. The financial crisis of 1991 was also blamed for this increase in poverty index in the country (Almas, Kjelsrud & Somanathan, 2013). International trade and poverty With the current surge in globalization and cooperation between countries, international trade has grown significantly between countries including India. International trade is defined as the exchange of goods, services, ideas and technological knowledge between countries geographically separated. The growth in international trade has led to significant growth in demand and supply in different sections of the world, thus spurring growth and elimination of poverty. Through this exposure, countries develop new ways of production, transportation, trading approaches and technological ways of production, which increases its gross domestic product. An increase in the gross domestic income of a country results into increase in the country’s per capita income, which significantly translates to an increase in the living s tandards on the people. International trade also opens up more opportunities for countries to market their products beyond their borders resulting into increased exports and imports (Topalova, 2010). India has advanced significantly in the arena of international trade and today contributes to a significant ratio of the world’s total exports both of goods, services and new technological ideas. The advances in international trade in the country began in 1991 when the country liberalized its market, thus opening up for international imports and exports. This has increased foreign investments in the country and opens it up for new ideas, means of production and techniques (Hasan, Cain & Mitra, 2010). International trade thus have a significant role in reducing poverty in any country as it opens it up and increases its overall trade volume. This increases the gross domestic product of the country which translates into an increased per capita income. A country with a higher per cap ita income has a decreased poverty level for each member of the population contributes in a significant ratio to the overall growth of the country. But how has international trade impacted on the poverty level in India and how has it narrowed the total population that leaves below the poverty line? In this paper, the impact of international trade in reducing the devastating effects of poverty will be evaluated. Through this evaluation, the strengths and

Research on Financial Statement Restatement and Ethics Paper

On Financial Statement Restatement and Ethics - Research Paper Example The company restated its position on august 1, 2012 stating that the financial records were not fit for their purpose in compliance with general accounting and reporting standards (Cubic Corporation, 2008). One of the impending reasons that can lead to the restatement as witnessed by the recent restatement is correcting errors. It forms one of the most common reasons for financial restatement (Cubic Corporation, 2008). It happens after the release of the financial statements. Consequently, errors are found by the company or the auditor. If the error margin is observed as material to financial statements, the statements are to be corrected and re-issued to the users. Materiality is determined if the statements will lead to the users coming to incorrect conclusions in their analysis (Taub, 2006). Another reason is the changes in GAAP. If a change in the current accounting methods brings about a change in the prior year’s statements in the case of retroactive application, the statements are required to be restated (Taub, 2005). As such, it ensures that no statement is changed over the course arises from a change in the accounting policy in use. For instance, the company chose to switch from a first-in-first-out inventory costing policy to a last-in-first-out. Consequently, the statements in the previous period must be restated in order to follow the new policy. Changes in reporting entity also cause restatement of financial statements (Lee et al., 2006). In the case of a company transition from one set of ownership to a new one or the structure of ownership change in the current year and the change has an impact in the current financial statements reporting or disclosures, the prior period comparative statements must be restated. The restatement is made to facilitate a smooth transition such that the implication will be that the change occurred in the beginning of the current year (Plumlee & Yohn, 2008b). Restatement brings about